NEW YORK -- Crude surged more than 5 U.S. dollars a barrel Thursday on geopolitical tensions in Europe and a falling dollar.
Light, sweet crude for October delivery jumped a sharp 6.48 dollars to briefly touch 122.04 dollars a barrel before retreating to settle at 121.18 dollars a barrel, trading up 5.62 dollars, on the New York Mercantile Exchange (NYMEX), highest close price in more than two weeks.
While the conflict in Georgia still weighed on the market, an agreement between the United States and Poland on a missile defense system in Eastern Europe has spurred a sharp response from Russia. According to U.S. media report, Russia halted its military cooperation with the NATO alliance on Thursday, which added to the pressure.
Meanwhile, the dollar lost ground against the euro Thursday as traders seemed to cash in profits from dollar's recent rebound. The dollar also fell against the sterling pound and the Canadian dollar.
The U.S. Energy Department reported Wednesday that the gasoline stockpiles declined a larger-than-expected 6.2 million barrels in the week ended Aug. 15, which has sent the inventory to below-average level. The report has prompted an over-night rally in the NYMEX October crude futures.
In London, the Brent crude for October delivery leaped 5.8 dollars to settle at 120.16 dollars a barrel on the ICE Futures Exchange.
Light, sweet crude for October delivery jumped a sharp 6.48 dollars to briefly touch 122.04 dollars a barrel before retreating to settle at 121.18 dollars a barrel, trading up 5.62 dollars, on the New York Mercantile Exchange (NYMEX), highest close price in more than two weeks.
While the conflict in Georgia still weighed on the market, an agreement between the United States and Poland on a missile defense system in Eastern Europe has spurred a sharp response from Russia. According to U.S. media report, Russia halted its military cooperation with the NATO alliance on Thursday, which added to the pressure.
Meanwhile, the dollar lost ground against the euro Thursday as traders seemed to cash in profits from dollar's recent rebound. The dollar also fell against the sterling pound and the Canadian dollar.
The U.S. Energy Department reported Wednesday that the gasoline stockpiles declined a larger-than-expected 6.2 million barrels in the week ended Aug. 15, which has sent the inventory to below-average level. The report has prompted an over-night rally in the NYMEX October crude futures.
In London, the Brent crude for October delivery leaped 5.8 dollars to settle at 120.16 dollars a barrel on the ICE Futures Exchange.
